STRATEGIC ALLIANCES Selecting your partner and laying the groundwork The PowerTelBoeing Experience A

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STRATEGIC ALLIANCESSelecting your partner and
laying the groundworkThe PowerTel/Boeing
ExperienceAugust 2000
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AGENDA

• Dynamic market
• PowerTel position
• Value disciplines
• Raising the competitive bar
• Selecting a partner
• PowerTel/Boeing strategic alliance
• Pacific Innovation Corridor
• 11 MILLIONS
• Summary

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DYNAMIC MARKET

• Intensifying competition
• Increasing demand for COST VALUE
• reliable, multiple services NOW
• high end solutions
• immediate delivery
• zero tolerance
• Me too RIP
• Need to identify emerging capabilities

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POWERTEL POSITIONTelecommunications Value Chain
Services Segment
Enterprise Solutions
Technology Suppliers
Network Segment
Telstra, Optus, Primus, RSL, PowerTel, AAPT
Macquarie, Hutchison, Davnet, One.Tel,
Systems Integrators, Application Service
Providers, ISPs,
Cisco, Nortel, Lucent, Oracle
Telstra, Optus, PowerTel, AAPT

• Create Services
• Brand
• Investment in Sales Support activities

• Tailored solutions for targeted customer base
• Integrator role

• Assess technology
• Cultivate relationships
• Upgrade networks

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VALUE DISCIPLINES
Product Excellence
Acquiring
Lowest Cost Operator
Customer Intimacy
Developing
Technological Strength
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RAISING THE COMPETITIVE BAR
CHALLENGE

Fully tailored, end to end solutions, Proven
experience, Credibility, Security guranteed,
Reliable, Available, Accessable,
Innovative, Complementary technology, Flexible,
Low cost, Seamless
ASPs Pick Mix Packs Multitude of ideas
applications Many new entrants Different
backgrounds Different levels of
expertise Traditional business moving in
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SELECTING A PARTNER

• Financial capability
• business performance
• adequate cash flows
• Organisational fit
• cultural
• strategic
• Access to Resources
• adequate skills
• existing assets
• Capability to deliver
• critical mass
• ability to meet timing

• Expectations
• common vision
• must be mutually beneficial
• ability to offer value
• outcome must deliver higher profit return
• synergy exists
• high level of willingness
• absolute commitment

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POWERTEL/BOEING STRATEGIC ALLIANCE
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POWERTEL/BOEING STRATEGIC ALLIANCE
Boeing and PowerTel bring together our world
class heritage and specialised core competencies
to deploy large scale, secure, broadband
networked e-commerce systems, providing high
value solutions that enable a competitive
advantage for Government and Corporate Australia.
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POWERTEL/BOEING STRATEGIC ALLIANCE
RULE 1 - TRY NOT TO INVENT ANYTHING

• Boeing Capability
• Applications hosting
• E-commerce systems integration
• E-mail
• Directory services
• Certification authority
• Desktop video
• Vertical market applications service provision
• Client side network architecture
• Project management
• Unified billing

• PowerTel Capacity
• ATM carriage services
• Frame relay carriage services
• Internet dial up carriage services
• Voice services - long distance, direct access
  link
• Centrex voice services
• Co-locate services
• Wireless local loop services
• Client applications delivery
• High quality video bridging
• Operational systems support

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PACIFIC INNOVATION CORRIDOR (PIC)

• High speed fibre optic link between Brisbane and
  the Gold Coast
• Supported by the Gold Coast City Council and
  State Government of Queensland
• Purpose
• create smart technology precincts
• attract business
• develop economic growth
• Key precincts
• IT and advanced technology
• Film and multi-media
• Advanced design manufacturing
• Tourism
• Entertainment and marine
• Transport and aeronautics

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PACIFIC INNOVATION CORRIDOR (PIC)

• PowerTel Capacity
• 140 kilometre optic fibre deployment
• STM1-STM16 (155mbps-2.4gbps)
• Network carriage services
• Operational support systems
• Boeing Capability
• Software development
• Applications development
• Systems integration
• Business systems development
• Information knowledge management

FIRST
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11 MILLIONS

• Rapid time to market
• Cost effective access to expertise
• Superior customer offering - difficult to match
• Increased reach - new markets, expanded sales
  team
• Higher return on investment
• Leverage strength of relationships
• Ability to manage complexity

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SUMMARY

• Alliances work
• Framework is all important
• You can control the battlefield
• Up front commitment is essential
• Actions speak louder than words

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STRATEGIC ALLIANCESSelecting your partner and
laying the groundworkThe PowerTel/Boeing
ExperienceAugust 2000